Monday, April 30, 2018

Asian Capital Powers Record Global Growth in Real Estate Investment

The highest level of real estate investment on record was
achieved in 2017 with a global total of $1.62 trillion (US), compared to $1.43
trillion (US) in 2016, according to Cushman & Wakefield’s “The Global
Investment Atlas 2018” report. The investment climate is anticipated to further
improve in 2018.

Cushman & Wakefield’s Carlo Barel di Sant’Albano,
says, “Global real estate performed exceptionally well in 2017 with volumes up
sharply and increasing valuations. This has provided good momentum going into
2018, and the balance of pricing, supply and demand all point to a further
healthy year.”

Asian investors were the major driving force behind the
record levels of real estate investment, with money from the region accounting
for more than half of all capital deployed, and 46% of all cross-border
activity. What is more, with the range of sources of capital within the region
still increasing, this is likely to signal a period of sustained dominance.

Global investors from APAC increased their exposure to
most markets, with the U.S. a notable exception. North America’s loss was
Europe’s gain however, as investment from Asian sources grew by 96%
year-over-year, primarily a result of several very large-scale transactions.